The Vorwerk Annual Report 2OO8

REPORT ON THE 125TH FINANCIAL YEAR

Hands up...

CONTENTSA Review of Vorwerk 4Management Report 2008 8125 Years of Vorwerk 11Implications of the Global Financial Market Crisis 12Thanks and Outlook 14Direct Sales, Vorwerk Kobold 17Direct Sales, JAFRA Cosmetics 20Direct Sales, Vorwerk Thermomix 22Direct Sales, Lux Asia Pacific 26Direct Sales, Vorwerk Feelina 27Vorwerk Engineering 27akf group 28HECTAS Facility Services 30Vorwerk Carpets 33Human Resources 33Assets and Financial Situation 35Opportunities and Risks 36Consolidated Financial Statements 2008 39The Main Companies in the Vorwerk Group 50Sources / Imprint 52… and don’t move! There are situations in which thisvirtually goes without saying. In business, movement isexpressly required. At least as long as the movement headsin the right direction. The Vorwerk Annual Report 2008takes a look at movement in its own inimitable way –making it a thoroughly entertaining subject.

Head Office of the Vorwerk Group (Holding Company)Vorwerk & Co. KGMühlenweg 17–3742270 Wuppertal, GermanyTelephone +49 202 564-0, Telefax -1301www.vorwerk.de / www.vorwerk.comExecutive BoardPeter Oberegger (Managing Partner)Achim Schwanitz (Managing Partner until 30 June 2008)Walter Muyres (Executive Board since 1 July 2008,Managing Partner since 1 January 2009)Wolfgang Bahlmann (until 30 November 2008)Eberhard Pothmann (until 28 February 2009)Jochen Sarrazin (until 30 April 2009)Reiner Strecker (since 1 March 2009)Supervisory BoardDr. Jörg Mittelsten Scheid, Wuppertal (Chairman)Prof. Dr. Pius Baschera, Schaan/LiechtensteinGünther Busch, Mülheim/RuhrDr. Axel Epe, DüsseldorfDipl.-Ing. Rainer Christian Genes, StuttgartVerena Klüser, MunichJens Mittelsten Scheid, MunichKaren Schmidt-Paas, Neuss4

A REVIEW OF VORWERKSubsidiaries:Austria, Belgium, Brazil, China, Czech Republic, Dominican Republic, France,Germany, Hungary, Indonesia, Italy, Japan, Mexico, Netherlands, Philippines,Poland, Portugal, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand,United States of AmericaDistributors:Argentina, Australia, Brunei, Bulgaria, Canada, Columbia, Croatia, Cyprus,Estonia, Finland, Greece, Hong Kong, Ireland, Israel, Kazakhstan, Latvia,Lebanon, Lithuania, Luxembourg, Malaysia, Morocco, New Zealand, Norway,Peru, Slovakian Republic, Slovenia, South Africa, South Korea, Turkey,Ukraine, United Arab Emirates, United Kingdom, Vietnam55

A REVIEW OF VORWERKKey Figures for the Vorwerk Group (not including the akf group)in million 1 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Balance sheet Total 964 1,028 1,062 1,150 1,204 1,756 1,693 1,725 1,643 1,648Partners’ Equity 519 548 547 568 607 686 750 796 809 856Partners’ Equity in % 54 53 52 49 50 39 44 46 49 52Financial Assets 68 144 146 147 144 144 47 52 27 53Other Fixed Assets 86 78 73 81 69 465 461 438 418 422Current Assets 808 804 841 922 985 1,136 1,162 1,218 1,183 1,164Liquid Resources 553 542 525 609 666 688 710 723 640 600Capital Investments* 34 25 27 37 20 33 38 26 27 48Depreciation* 28 29 26 27 25 35 47 41 39 38Personnel Costs 349 351 370 405 401 434 448 455 436 452Number of Employees 15,311 15,031 19,458 19,516 20,039 23,011 23,163 22,628 22,570 22,255Self-employed Advisers 23,015 22,904 25,864 26,695 26,986 463,136 464,342 510,857 543,415 555,718Group Sales (incl. sales tax) 1,268 1,243 1,218 1,231 1,287 1,594 1,772 1,836 1,777 1,832New Business, akf group** 249 289 303 339 348 480 409 507 546 605Total Business Volume 1,517 1,532 1,521 1,570 1,635 2,074 2,181 2,343 2,323 2,437* Without financial investments ** Included in the consolidated statements at equity, 2004 with a 15-month business periodThe Vorwerk Group comprised the following business segments in the year 2008:Direct Sales, Vorwerk Kobold, including Fitted Kitchens (Fitted Kitchens until 30 June 2008) Direct Sales, VorwerkThermomix Direct Sales, Vorwerk Feelina Direct Sales, JAFRA Cosmetics Direct Sales, Lux Asia Pacific in AsiaHECTAS Facility Services akf Financial Services Vorwerk Carpets6

Vorwerk Group: Business Volume 2008Kobold incl. Fitted Kitchens29% (1 696 m)akf group 25% (1 605 m)Other (1 21 m)Carpets 3% (1 79 m)HECTAS Facility Services 8% (1 201 m)Lux Asia Pacific 1% (1 36 m)Thermomix 16% (1 386 m)Feelina (1 3.3 m)JAFRA Cosmetics 17% (1 409 m)2,500Business Volume 2008 in million 12,2502,0001,7501,5001,2501,0007501999 2000 2001 2002 2003 2004 2005 2006 2007 20087

MANAGEMENT REPORTIn its 125th anniversary year, the family-owned company Vorwerk was once again ableto maintain the growth levels attained in previous years. The business volume, which comprisesturnovers arising from products and services as well as the new business transacted at akf group,achieved a best-ever high level of 2.437 billion euros. The larger divisions contributed particularlyto this 5 per cent increase. Sales of the versatile kitchen appliance Thermomix took first place,again with double-digit growth rates. The international activities in the Kobold vacuum cleanerbusiness as well as the level of new business transacted at akf group also made a considerablecontribution to growth. The increase would have been even greater had it not been for the affectsof the strong euro. Sales at JAFRA Cosmetics in Mexico and the USA appear lower when thebusiness volume of the company is stated in euros, lower than the good performance of the staffand consultants there would justify. Thanks to the overall pleasing development, profit at theVorwerk Group could be upheld. The proportion of partners' equity had increased to 52 per centby the end of 2008 despite the implications of the global financial market crisis. Vorwerk has,therefore, great scope for entrepreneurial manoeuvre.578,000 persons were working for Vorwerk worldwide in 2008, 2.1 per cent more than inprevious year. 556,000 of these people were self-employed direct sales advisers. This means thatas one of the largest direct selling companies in the world, the Vorwerk Group is participatingin the dynamic development of this segment. In this respect Vorwerk is the company where allreputable forms of direct sales are to be found.Vorwerk was able to successfully implement its strategy of continued growth andof providing additional impulses across many areas, particularly in its core direct selling business.Growth drivers at the Vorwerk Group are the deeper penetration of existing and the opening-upof new markets, the targeted development of management staff, quality and innovation in termsof products, services and sales channels as well as the adaptation of the company to the necessitiesof the global economy. The diversified structure in terms of products, sales channels and regionshas proved itself time and again. Vorwerk is divided into nine divisions with subsidiaries in 24countries on four continents. Vorwerk products are available in another 33 countries around theworld through distributors. The dynamic degree of growth was not only accomplished abroad:the German Thermomix sales organisation achieved a high level of expansion as did the8

When the continents drifted apart during the Mesozoic Era,there are said to have been some heart-rending farewell scenes.

MANAGEMENT REPORTakf group with its volume of new business transacted within Germany. The evident declineover recent years in the Kobold vacuum cleaner business in Germany has slowed considerablyand sales have almost stabilised. The overall proportion achieved abroad in 2008 wastwo percentage points above previous year with 59 per cent. In terms only of direct selling,it accounts for over 80 per cent and is at the level as previous year.Vorwerk continues to see a large growth potential for the direct sales business and itsdirect approach towards customers through highly motivated advisers. Customers, not exactly‘spoiled’ in many parts of the world in terms of service quality, appreciate the possibilities offeredby direct selling i.e. the opportunity to test the products directly at home without any commitmentand to satisfy oneself of their quality and performance. Further, there is a great appeal– particularly in developing and emerging countries – in the opportunities offered for earningsand independence as well as for personal and career development through being a direct salesadviser. Also in the other divisions – whether it be at akf group, HECTAS Facility Services orVorwerk Carpets – the direct approach towards customers has proved a reliable guarantee forsustained commercial success with a high degree of satisfaction on both sides.Vorwerk attaches great importance to fairness in relationships with customers andadvisers and supports sensible efforts to protect consumers and advisers. In this respect thereare no initial investments necessary at Vorwerk for training or demonstration materials. Salesrepresentatives working in companies of the Vorwerk Group do not have to attempt to resell productsat their own risk, either. Also, for many years previously, Vorwerk had already contractuallyensured the customers' no-risk right of withdrawal from a direct sales purchase contract which hasin the meantime been regulated by law. Sustained success in direct selling presupposes long-termsatisfaction among both customers and advisers. This necessitates products of high quality andsales systems that are of good standing. To ensure standards in direct selling, Vorwerk togetherwith other companies in the business that place similarly high demands on their workforce areorganised in the Federal Direct Selling Association of Germany (BDD) and in Direct SellingEurope (DSE). Member companies undertake to comply with the voluntary code of conductfrom the associations, a code that goes beyond the statutory provisions.Vorwerk was able to further extend its competence as one of the largest and most versatiledirect sales companies in the world with the deeper penetration of existing and the opening-upof new markets. Awareness for the Vorwerk umbrella brand as well as for the respective producttrademarks again increased. Anyone wishing to make a successful career in direct selling willexperience Vorwerk as one of the prime addresses.10

MANAGEMENT REPORTin large divisions placed higher demands on staff and management. Achim Schwanitz retiredas Managing Partner after 14 years of service; Walter Muyres, a personality connected with thecompany for decades, was appointed Managing Partner and now chairs the Vorwerk Grouptogether Der with Grad Peter der Oberegger. Internationalisierung The termination der Vorwerk of the fitted Gruppe kitchen hat business weiter zugenommen. and the resolution DerAnteil to suspend des außerhalb activities Deutschlands in Feelina Ironing erzielten Systems Geschäftsvolumens were grave entrepreneurial liegt bei 56 Prozent decisions an. Bezogen that hadauf direct das consequences Kerngeschäft on Direktvertrieb the staff and beträgt advisers der working Auslandsanteil there. Important sogar 77 Prozent. steps to modernise theentire Kobold Vorwerk direct gelang sales es, operations die weltweite were Marktführerschaft prepared at Kobold bei Deutschland hochwertigen in Direktvertriebsproduktennow need to (‚High be communicated Ticket’) auszubauen and implemented. und seine starke Besides Positionen this, large im expansive gesamten projects Direktvertrieb such as2008, steps thatzu the festigen. commencement of JAFRA operations in Brazil, the restructuring of the Lux Asia Pacific salesorganisation in Japan, the construction of new manufacturing facilities for JAFRA Cosmetics inMexico, the high increase in Thermomix sales figures, the high level of growth in new businessat akf group as well as the step-by-step Wesentlichen modernisation and Anteil standardisation am Erfolg of hat the die IT gelungene landscapeDiversifizierung also required the in attention verschiedene of management. Produkte und Märkte. Der Einstieg von Vorwerk in denDirektvertrieb von Kosmetik, Gesichts- und Körperpflege durch den Kauf von Jafra Cosmeticsin den USA Implications im Jahr 2004 hat die of Vertriebslücke the Global auf Financial dem amerikanischen Market Kontinent Crisis geschlossen.Vorwerk ist damit ein global operierendes Unternehmen. Dieser jüngste Geschäftsbereich in derVorwerk In Gruppe the last ist few inzwischen weeks of 2008 in der there Unternehmenskultur were no direct implications und in den from Strukturen the financial des Vorwerk marketKonzerns crisis that fest could verankert. be felt on the activities of Vorwerk – with two exceptions. Firstly, the necessityto refinance Herausragende the akf Wachstumsquellen group with funds waren from commercial im Jahr 2006 banks bei Jafra will represent Cosmetics a das considerable Geschäftin challenge Mexiko with mit a einem view to Umsatzplus the year 2009 von and 15 somewhat Prozent. dulls Im Raumpflegebereich the expectations for ‚Kobold’ growth. Secondly, wuchsenbesonders among the die financial Geschäfte assets in at China the Vorwerk und in Italien Group sowie there bei was Lux a decline Asia Pacific in the in unrealised Indonesien. gains Beim inKüchengerätegeschäft securities held. However, trugen the fall die Wachstumsergebnisse in the market values in much Italien, lower in than Deutschland the comparable und in Spanien indices.besonders Due to the zum good Erfolg economic bei. Die situation nach of der the Equity-Methode company, both in these das implications Geschäftsvolumen will be einbezogenemanageableakf for Bankengruppe the Vorwerk Group. mit ihren Finanzdienstleistungen ragte mit einem Zuwachs beim Neugeschäftheraus. Größte Herausforderung blieb der Raumpflegebereich in Deutschland mit einer nichtzufriedenstellenden Entwicklung. Auch Lux Asia Pacific konnte seine Wachstumspotenziale nichtin vollem Umfang ausschöpfen. The extent to which other concrete consequencesmay ensue for Vorwerk from the global financial crisis cannot currently be predicted. It isprobable that Vorwerk, too, will be affected. However, there are a number of indices whichwould suggest that the crisis will not hit Vorwerk with absolute severity. The business model is basedto a great extent on the direct approach towards customers. The personal demonstration of theproducts and individual talks to customers is best suited to overcoming scepticism and reluctance12"It's moving!" Or isn’t it? Or is it?

MANAGEMENT REPORTto make a purchase. And in economically difficult times it may become more attractive to havea job in direct selling to provide a main or supplementary source of income. Vorwerk focusesresolutely on quality for its products and services and is, therefore, not compelled to becomeinvolved in ruinous price wars. Not least of all, Vorwerk as a company in family ownershipwith a high proportion of partners' equity is largely independent of external financial sources –with the exception of the refinancing possibilities needed for the akf group.There have been no incidents of any particular significance that have occurred sincethe close of the 2008 balance sheet.Thanks and OutlookThe Executive Board would like to thank all staff as well as all direct sales advisersthroughout the world for the commitment shown for the interests of the company. The good andtrustworthy cooperation at Vorwerk is an important guarantee for ensuring that the forthcomingchallenges can be successfully met.Overcoming the consequences of the worldwide economic crisis has, in the opinion ofthe Executive Board, the very highest priority for management staff at all levels. In the directsales organisations it will be a question of emphasising the income and career opportunities and ofalways keeping the sales systems attractive, even if this means a modernisation as e.g. at KoboldDeutschland in order to attract new sales staff. The outstanding product quality and improvingservice excellence remain important arguments in favour of Vorwerk both from a customer aswell as an adviser point of view. This enables trust to be established and enhanced, somethingthat is particularly important in a crisis. In the services sector covered by HECTAS, akf andVorwerk Carpets it will be a case of continuing with the distinct orientation towards small andmedium-sized companies. Vorwerk will continue along its secure path of low risk and long-termalignment with regard to its policy for investments in securities.14

Classic horse trading generally involves some serious wrangling.But to achieve a real win-win situation, both parties shouldbe willing to make a move and meet each other half-way.

MANAGEMENT REPORT KOBOLDconsistent growth from year to year and thus proves that even established and deeply-penetratedmarkets can offer growth perspectives for direct selling. The standing and development of Koboldin Italy is the result of resolute, persistent optimisation of the sales system in small steps, so as notto overwhelm the experienced staff in direct selling but to gradually take them along the path ofchange. Folletto is currently strengthening its customer care activities e.g. by optimising supplylines for consumables and financing options.Turnover at Kobold Germany in 2008 could just about be maintained at 213 millioneuros after the declines experienced in the three previous years. The Executive Board regardsthis as a partial success of great significance. The profound restructuring of the Kobold salesorganisation is now entering its decisive phase. The most fundamental step – the adoption ofnew direct sales concepts to complement the previous sales model – is planned for 2009. Fromthe restructuring of the German Kobold direct sales organisation, divisional management doesnot only hope to achieve long-term growth impulses for Germany but to learn more about theimplications of innovations for the entire division.Vorwerk Kobold is also progressing well in China. 6 per cent growth in salesvolumes is an excellent performance in view of the legal framework in China, one that is notexactly conducive to direct selling. The current continued focus on the urban centres Shanghaiand Beijing and the optimised sales system practised there may be applied to other regions ofChina. To this end, Vorwerk wishes to develop management staff from the existing organisationto take on leadership roles there.By contrast, the Kobold sales organisation in Spain and France could not develop to thedesired degree. The affects of the already long-continuing national economic slowdown in Spain,together with an erratic increase in the number of unemployed persons and very widespreaduncertainty among households have all had a choking effect.Sales in Austria could be stabilised with a newly-introduced sales system. The developmentin the Czech Republic has been pleasing as has the trend in exports through distributors.The establishment of the business in Russia is also developing very positively. This means thata stable base has been created to enable the Kobold vacuum cleaner business, which is todayhighly dependent on Italy and Germany, to be more diversified in the future.18

Just pulling your legThere was an Old Man with a flute,A sarpint ran into his boot;But he played day and night,Till the sarpint took flight,And avoided that man with a flute.There was a Young Lady whose eyes,Were unique as to colour and size;When she opened them wide,People all turned aside,And started away in surprise.There was an Old Lady of Chertsey,Who made a remarkable curtsey;She twirled round and round,Till she sunk underground,Which distressed all the people of Chertsey.There was an Old Man on a hill,Who seldom, if ever, stood still;He ran up and down,In his Grandmother's gown,Which adorned that Old Man on a hill.There was a Young Lady of Portugal,Whose ideas were excessively nautical:She climbed up a tree,To examine the sea,But declared she would never leave Portugal.

MANAGEMENT REPORT KOBOLD / JAFRA COSMETICSThe fitted kitchen company, a business that was pursued only in Germany and was apart of the Kobold Division, ceased operations in 2008 on the basis of the resolutions passedin 2007. In view of the prevailing market circumstances there were no perspectives for a viablefuture. The negative implications for staff in the production and administration areas could beminimised through comprehensive in-house and social measures. Advisers and management staffwere presented with alternatives within the Vorwerk Group.Direct Sales, JAFRA CosmeticsFacial and body care, decorative cosmetics, fragrances and spa – the product portfolio atJAFRA covers the entire spectrum of innovative cosmetics. By selling directly to the customerat home, it is possible to explain and make personally perceivable the high product quality and,in addition, provide consultation on the proper application. These distinct advantages of directselling when compared with other sales approaches can be optimally applied in the cosmeticsbusiness. This is also the reason why the cosmetics segment is the most rapidly growing one ofall in direct selling.JAFRA has constantly further developed and refined its products and sales systems overthe fifty years since its establishment. Cosmetics from the house of JAFRA are developed in thecompany’s own R&D facilities in Westlake (USA) as well as in close cooperation with laboratories inFrance and Switzerland. They are manufactured at JAFRA in Mexico in accordance with Vorwerkquality standards. In this way the high quality level is assured and customers receive products thatare optimally matched to meet individual needs. And in some specific lines e.g. the Royal Jellyanti-ageing products, JAFRA has succeeded in attaining a unique market position.The attractiveness of a job in the JAFRA direct sales organisation is a success factor that isjust as important as the quality of the products. At JAFRA everyone can become financially andoccupationally independent through self-employment and a free allocation of time spent working.It is particularly in countries having few interesting occupational opportunities for women thatJAFRA often represents the only practicable way of becoming self-employed without any capitaland without any great bureaucratic hurdles needing to be overcome. Since the consultants decidefor themselves how much time they wish to devote to their work in direct selling, this job suits20

women who also have another employment or who would like to reconcile family managementwith career opportunities. Since personal success directly determines income and careerdevelopment, the system is considered attractive and fair. All management staff started workas consultants and they have developed into their present day positions thanks to their ownpersonal commitment. Dreams can be inspired through such examples.Sales at JAFRA grew worldwide by 2 per cent to 602 million US dollars. It wasonly the devaluation of the peso, the currency in the largest market Mexico, which prevented adistinct increase in the figures in US dollars. Concerning the number of consultants, too, a newrecord level was achieved with a sales force of some 526,000. And so JAFRA’s success story underVorwerk’s leadership continues.JAFRA is the market leader in Mexico with cosmetics; the brand is well-known and isassociated not only with high quality but also with attractive career perspectives and opportunities.Sales there in local currency increased by 6.2 per cent to 5.3 billion pesos (482 million USdollars). The role of JAFRA as the No. 1 in the cosmetics business could be further enhanced. TheMexican sales organisation successfully sustained its position against a recessive trend throughoutthe country and was able to develop far better than other direct sellers in Mexico. The outstandingmanagement at the regional level represents a particular strength. These people contributeto the dynamic development of the business mainly in their own responsibility and are optimallysupported by national sales management.JAFRA has two sales organisations in the USA and in this way takes into account thedifference between English and Spanish as native languages. Turnover declined here in 2008.Sales of 77 million US dollars were 16 per cent below those of previous year. New managementin the USA will try to curb this trend. One aspect of particular interest in the USA is managementdevelopment, an issue which will be far more targeted in the future. Further, the commissionsystem was improved.21

MANAGEMENT REPORT JAFRA COSMETICS / THERMOMIXThe development was inconsistent in the relatively small JAFRA country companiesin Europe. Good progress in Italy had to be seen in the light of stagnating or declining turnoverlevels in other countries. Sales in Europe amounted to 27 million euros (39 million US dollars).A significant milestone in 2008 was the establishment of JAFRA’s own sales companyin the growth market of Brazil. JAFRA has good experience from past years and can build on adetermined base of previously independent JAFRA sales partners. The insights that can be gainedhere will be of significance for the whole of South America.JAFRA has set itself the objective for the future of improving still further theleadership and training of sales consultants, of positioning the products more intensively in theup-market quality segment and of expanding the business into other countries of Latin America,Eastern Europe and Asia. This should enable the success of JAFRA to be more widely supportedfrom several countries thus gradually reducing JAFRA’s continued very strong dependence onthe success achieved in Mexico. Vorwerk is investing at JAFRA in a new manufacturing facilityin Mexico for cosmetics. This will – in the same way as the already established distribution centre– support the course of expansion and enhance, in addition, the quality and delivery reliability.Direct Sales, Vorwerk ThermomixA kitchen appliance that leaves a lasting impression! It combines all the functions ofa universal kitchen processor and, in addition, it can cook and simmer and even enable lessproficient cooks to quickly and simply prepare healthy meals from fresh ingredients. Anyonewho experiences the Vorwerk Thermomix in use in the kitchen is quickly convinced that suchan appliance should be a part of the basic equipment in every household and is something thatno-one will want to do without it in the future.The Thermomix is the prototype of a direct selling product: unique, complex in itsfunctionality and versatile in its application – with benefits that are not easily recognisable atfirst sight. It is not an exceptional product feature that can be highlighted in the specialised retailoutlet or advertising, but the intelligent combination of partial functions that makes it special.Curiosity is quickly aroused among customers. And surprising effects are guaranteed during the22

In light of the brake-light speed of 1,079,252,848.8 km/h, driving right up behindanother car is of little real advantage. Because tailgaters only get to know theintentions of the driver in front a billionth of a second faster than anyone else.23

MANAGEMENT REPORT THERMOMIXdemonstration. Here it is often only a small step from the initial enthusiasm to a purchase. Thequalified presentation at home, in which the Thermomix is demonstrated and the delicaciesenjoyed, allows the special features of the appliance to be convincingly highlighted and thebenefits clearly shown, something which arouses the desire to purchase. Since this is so successfulwith the Thermomix, not only is the number of customers constantly growing but the numberof representatives too.The Thermomix Division has managed to convincingly combine a product, salessystem and growth strategy into a successful business model. Thermomix achieved a turnoverof 386 million euros worldwide with an increase of 17 per cent. No other Vorwerk company isgrowing as dynamically as this. In this respect it has been possible to support the businesssuccess from an increasing number of countries and thus to further strengthen independencyfrom regional fluctuations. Besides the core countries of Italy and Spain other, to-date smallercountries are developing considerably. In this context the talk today cannot only be of a successfulproduct for Southern Europe but of one for the whole of Europe. For the very first time some400,000 appliances were sold worldwide, a fact which also presented challenges for productionand distribution operations.Italy just had the edge in 2008 in the sportsmanlike competition to be ranked the largestThermomix company. The Vorwerk sales organisation there, Contempora, achieved an increasein turnover of 7 per cent to 114 million euros for its “Bimby”, the name of the Thermomixappliance in Italy i.e. another new record. Spain, in the previous year just ahead of Italy, had toaccept a decrease in 2008 with sales standing at 102 million euros. The cause of this is not onlyto be found in the already difficult economic situation in Spain before the global financial marketcrisis, but also in the structural consolidation, something Italy has already been through. Themeasures initiated represent a good basis to enable Spain to once again grow at rates achievedin previous years. However, the financial crisis will probably hit Spain harder than most otherEuropean countries.The most pleasing signal in the Thermomix Division was the extraordinary success inGermany. The sales volume here was increased remarkably by 60 per cent to 66 million euros.Germany was thus able to impressively maintain its third place ranking among the largest Thermomixcountries. The readjustments made in recent years, whilst accepting possible losses in the numberof representatives, are now beginning to pay off to the full. A particularly attractive finance24

We moveWe are movedWe would move...Movement actuatorCold buffetBanana skinAlarm clockAttractive woman/manPrize moneySteep slopeMeter maidContractionsRain showerDateFleasHungerCholesterol levelThunderstormSeven-league bootsAlarm systemSwarm of waspsEmpty iceboxDay’s work overBathroom scalesSpecial offersMirageClosing timeA child’s criesMovement inhibitorTight skirtWarm bedWheel clampTraffic jamDelayLeg in castHolding patterStop signSpeed limitDriver wearing a hatLonesome islandPrice of gasolineBall and chainRich mealBraTirednessHandcuffsDoldrumsCornSteep ascentHigh heelsChockExcess weightLimp biscuit

MANAGEMENT REPORT THERMOMIX / LUX ASIA PACIFICmodel was created as an anniversary-year campaign and this led to additional purchases. Thesales team is highly motivated and success-oriented and as a result the positive development willcontinue.The development in France (plus 42 per cent) and Poland (plus 46 per cent) wassimilarly dynamic. In Portugal, the country with the most sustainable growth rates in recentyears, the sales performance could once again be improved, this time by 36 per cent.The basis for success is a cross-border, uniform understanding of “best practice” andits resolute application. This will now be adopted in new markets. The small yet successfullygrowingsales organisation in Taiwan and the establishment of a Thermomix sales unit in Mexicorepresent two bridgeheads for Asia and for the Americas. Their development will demonstratethe degree of unutilised potential for Thermomix. The export business to other countries withsales through independent distributors is also growing noticeably and is an additional pointer tothe fact that the Thermomix is an appliance for the future for all manner of cuisines and tastes.Direct Sales, Lux Asia PacificA direct sales turnover of 36 million euros at Lux Asia Pacific – the organisation primarilyselling vacuum cleaners and water purifiers under the Lux brand throughout many parts of Asia– was well below expectations and poorer than the development in the previous year. In particular,it still has not been possible to lead the business in Japan back to the successes of earlier yearsdespite fundamental restructuring. Additionally, the adjustment of the sales lines in Indonesiaresulted in lower sales volumes. There are products and concepts in the future-oriented fieldof water purification that have not yet been satisfactorily implemented. To be successful in thisarea, it is essential to be able to offer an affordable product for use in private households, onethat is technically sound and reliable and which is able to compete against the keen competitionrepresented by bottled water.The Vorwerk strategy for Asia envisages further gradual integration into the Vorwerkorganisation of the Lux Asia Pacific country companies following the already-implementedchange-over to Vorwerk appliances for some individual product lines. The successes of VorwerkKobold in China and the encouraging progress of Thermomix in Taiwan show that Asia willcontinue to be of more and more significance for Vorwerk. Lux Asia Pacific will also make itscontribution to this.26

MANAGEMENT REPORT FEELINA / ENGINEERINGDirect Sales, Vorwerk FeelinaIt is a part of the dynamism of the family-owned company Vorwerk that new things arealways being tried out, even though they may turn out to be unsuccessful. At the beginning ofthe decade a new market trend became apparent with the emergence of ironing systems. Withits competence in and around the household and family Vorwerk felt that it would be able toparticipate in this development and was quickly able to offer a high-quality ironing system,Feelina, from its own production facilities. It is a great help in doing this unpopular chore.However, shortly after the launch of the Feelina in 2002, the still young market wasalready moving in favour of the less convenient and efficient yet much more compact and lessexpensive ironing stations that manage without an intigrated ironing board. The market for fullyequippedsystems like the Feelina stagnated from then onwards. Moreover, it was more difficultthan expected to find suitable advisers for the direct sale of ironing systems without jeopardisingthe positive development of the similarly-structured Thermomix sales organisation. Both rely ona presentation in the form of a demonstration party in the home.Other considerations, too, regarding separate sales channels in order to achieve a higherand thereby economic number of units find their limitations in any realistic assessment of themarket. So the only decision that remained was to suspend the activities of the Feelina sales forcein the first quarter of 2009. Staff and consultants were made offers to work in other sections ofVorwerk.Vorwerk EngineeringThe Vorwerk Engineering Division with its main facilities in Wuppertal (Germany) as wellas with production sites at Cloyes (France), Arcore (Italy) and Shanghai (China) is responsiblefor the development and manufacture of household appliances for the direct sales activities. Thespecial requirements entailed in this form of selling – demonstrability and dependability – aredirectly considered during the inception process. More than 18 million euros were invested in R&Dby the Vorwerk Group in 2008. Engineers at R&D are expected to have the ability and willingnessto embrace the view of the direct selling organisations. By the same token, the development ofthe products directly reflects the practical experience of the sales force in the households. As aconsequence, Vorwerk Engineering thinks and acts differently to colleagues in other companies:27

MANAGEMENT REPORT ENGENEERING / AKF GROUPit is not the ‘cheap-as-possible’ mass production and competition orientation that is in focus, butfar more it is the quality and sensible, unique features of the appliance, demonstrable in directselling, that are to the fore – like the filter technology of the Kobold that make it suitable for allergysufferers or the electronically-controlled motor in the Thermomix that creates hitherto unknownpossibilities for stirring and chopping. “Thinking Differently” is the motto at Vorwerk Engineering,also in terms of a demarcation towards manufacturers producing for the retail trade.Vorwerk Engineering relies on its own production in coreareas. This means that the depth of manufacturing is greater than average. Quality-decisive componentssuch as injection moulded parts or the motors are entirely manufactured at Vorwerk. Theinternational launch of the new Kobold VK 136 vacuum cleaner with its likewise new motorisedbrush together with the great increase in the Thermomix sales figures meant that Vorwerk Engineeringhad once again to demonstrate its innovative power. Against this background, it wasagain possible to enhance the already high product quality across the entire range and to furtherimprove the process excellence.The exclusivity of Vorwerk Engineering, to only produce for its own company,makes the manufacturing operation and the economic success of this part of the company verydependent on the planned and then realised sales volumes achieved by the sales organisations.Since sales of vacuum cleaners and water purifiers at Kobold and Lux Asia Pacific are behind themid-term plans, the high level of hours in the work time accounts of the staff at the plants concerned– Wuppertal and Shanghai – will have to be reduced over the next few months. Utilisation at thefacilities in France was, by comparison, very good thanks to the high sales figures achieved withthe Thermomix.akf groupakf group continues to enjoy ever-growing interest in its offerings for the leasing andfinancing of mobile assets, in particular cars and commercial vehicles but also manufacturingtechnology and other equipment. akf was able to improve its level of new business transactedby 11 per cent to 605 million euros and was thus able to maintain its position despite a markettrend reflecting fewer new car registrations. akf even did better than expected in the particularly challengingdealer business segment. The market obviously wants to have rapid and uncomplicatedfinancial solutions, something which akf as a partner of small and medium-sized companies can28

Excerpt from the poem to the east wind by Marianne von Willemer, Johann Wolfgang von Goethe, from the West-Eastern Divan.

MANAGEMENT REPORT AKF GROUP / HECTASprovide better than leasing companies with an attachment to a large high-street bank or an automotivemanufacturer. It was this group of small and medium-sized companies in particular thattook advantage of the leasing and finance deals offered by akf, and this to an over-proportionateextent. akf achieved this growth in new business against a background of satisfactory economicparameters. In this respect the careful risk assessment process and the conservative estimation ofresidual values again proved their worth. akf group is a sound financial institute.Given its good positioning on the German market, akf continued with its efforts towardsinternationalisation. Irrespective of the difficult economic situation in Spain, expansion is continuingthere according to plan, just as it is in Poland. akf is also extending its sphere of activityin Germany with targeted finance schemes for customers in the yachting segment, one that isenjoying growing demand.The success of akf shows that there is a strong and growing long-term role thatindependent leasing companies can play in Germany. akf will also maintain this position in thecurrent financial crisis. In the last few weeks of 2008 some lenders, themselves under pressure toincrease the ratio of their core capital to balance sheet total, directly reduced refinancing fundsfor other credit institutions or failed to implement prospective credit lines. However, in thefollowing weeks the refinancing possibilities for akf improved again quite distinctly. A marketadjustment in favour of larger leasing institutes at the expense of independent financiers of smalland medium-sized companies as a consequence of the crisis would be counter productive for thestability of the German financial system.akf group is included in Vorwerk’s consolidated financial statements at equity.HECTAS Facility ServicesHECTAS Facility Services is a Europe-wide, highly professional, industrial servicescompany operating in the infrastructure facility management sector. This strategic alignment wasresolutely pursued again in 2008. HECTAS was able to increase its sales volumes in the Europeanmarkets for infrastructural facility management by 8 per cent to 201 million euros despitesome very difficult market circumstances. A distinct sales orientation in the acquisition of newcustomers, a resolute customer care approach, an increase in the number of existent customersas well as an acquisition in Austria played a decisive role in HECTAS passing the 200 millioneuro mark for the first time.30

Ball flies overa wallPolar bear catchesan arctic harein a snow stormMan withsombrero on a bikeFlagpole inthe windCowboy passinga windowPrisoner transportdriving pastthe Eiffel TowerSharks fleeingbefore a submarineParachute floatingby a windowStart ofa mouse raceCat havinga bathJumping for joybecause shares havesoaredSnail witha rear spoilerSnake climbingstairsSpider doinga hand-standStone beingthrown into waterMexicansombrero marchwith one graduateWorm onroller skatesPig turninga cornerJumping for joyin the wrongdirectionBear climbinga tree

MANAGEMENT REPORT HECTASParticularly pleasing was the development of business in the Benelux states and in EasternEurope with sales growing at double-digit rates. HECTAS has been firmly established on themarket in the Netherlands for many decades. In Belgium and Luxemburg HECTAS is developingwith contracts that are generally generated through customer relationships to multinationalgroups. Additional new business is then acquired locally from this starting point. In EasternEurope too – a region with low wage levels and, therefore, still today low overall contract values– HECTAS often follows an expanding customer from Western Europe and then gradually startsto acquire a standing in that country.HECTAS successfully completed the acquisition of the traditional Vienna-based Heimlichcompany in Austria. This has distinctly enhanced the national market coverage of HECTASAustria and it has thus become the fifth largest service company in infrastructural facilitymanagement there.In Germany, HECTAS’s most significant market, three large contracts were lost inthe recurring invitation-to-tender rounds. These losses in turnover could not be completely orquickly compensated for with sales activities to acquire new accounts. Consequently, HECTASin Germany recorded a decline in turnover in 2008. The required restructuring measures inGermany were promptly initiated and they encumber the results in the year under review.The increasingly competitive situation in some European countries again led tomore intense pressure on market pricing in 2008 and consequently to a negative development inmargins. HECTAS is countering this trend with differentiated, quality proposals. The approachadopted by HECTAS of targeted and resolute process optimisation is intended to convince existingand new customers of HECTAS’s services portfolio and so ensure that improved marginscan be achieved in the future. Against the background of its mid and long-term growth strategy,HECTAS regards the continuing consolidation of the markets for infrastructural facility managementas an opportunity for the further development of the company.The current financial market crisis and the expected downturn in the economy willpresent HECTAS with some great challenges. The reputation among customers, the competenceof the company and its staff as well as innovations with regard to the type and extent of theservices provided will help to keep the implications to a minimum.32

MANAGEMENT REPORT CARPETS / HUMAN RESOURCESVorwerk CarpetsVorwerk Carpets – the origin of the family-owned company Vorwerk – has furtherenhanced its position as a manufacturer of high-quality carpeting in its 125th anniversary year.Quality and design have always been the key to success in this segment. It pays not to enter intoany ruinous price competition in periods when markets are difficult. It is far better to focus onquality and service. Turnover could be increased by 2 per cent to 79 million euros despite a verydifficult market environment. According to a customer research study, Vorwerk Carpets has thebest degree of availability and the best reputation among specialised retailers in Germany.Foreign countries, too, are increasingly becoming interested in carpets bearing the Vorwerkbrand. Exports account for some 30 per cent. The strategic objective of the Carpets Division is tohave a greater presence abroad and thereby to become less dependent on domestic trends.Vorwerk resolutely invests in new technologies and new market segments. The cornerstonewas laid in 2008 for the company’s own carpet tile collection and access was gained to theluxury hotel segment. Supported by the European Fund for Regional Development, considerableinvestments are being made in the improvement and extension of the plant in Hamelin (Germany).Human ResourcesThe number of people working for Vorwerk worldwide – in other words the employedstaff including those at akf group as well as self-employed advisers (sales representatives) – increased in2008 to an average figure of 578,193. The slight decrease in the number of employees to presentday22,255 persons (without akf) is attributable to reductions in headcount at Lux Asia Pacific insome Asian countries. By contrast, employment at companies of the Vorwerk Group in Germanyand Europe increased overall. The distinct rise in the number of self-employed advisers by morethan 12,000 to a total figure of 555,718 persons is mainly due to the success of JAFRA Cosmeticsand Vorwerk Thermomix.People development at Vorwerk is especially aligned to generating an adequate number ofmanagement staff in the sales areas through appropriate personnel development measures and attractiveprogrammes for young persons just commencing their careers. A lack of such management staffis a decisive limiting factor on the growth perspectives of the company, particularly in direct selling.Of course, there are limits to the extent to which staff can be exchanged between the divisions atlevels below that of senior management due to the diversity of the product portfolio and the differentsales channels, the regional particularities and not least of all the differing cultures and languages that33

MANAGEMENT REPORT HUMAN RESOURCESprevail. In this respect the most promising approach is a long-term development of personnel as theyprogress through the various management levels. Appropriate division-specific programmes with thispurpose in mind are supported by Corporate Human Resources.Being an international company, Vorwerk endeavours to have trusting and efficient cooperationbetween all members of staff across all national borders. The growing numbers of persons with aninternational focus in their work are prepared for global assignments with language and interculturaltraining programmes. The proportion of management staff at Head Office and divisional levels witha non-German cultural background is constantly increasing.Vorwerk strives for good working conditions and compatibility between family and career.Regular staff surveys allow evaluation of the personnel policy. Individual measures such as theestablishment of a ‘mother-child’ bureau at Head Office as well as participation in external audits andthe implementation of recommendations contribute to positively positioning the employer Vorwerktowards employees and potential staff. Targeted personnel development, not only in direct selling,will grow in significance in the future.Staff (annual average) 2005 2006 2007 2008Direct SalesDivision Kobold 4,086 4,413 4,562 4,625Division Thermomix 874 914 968 954Division Feelina 21 27 23 23Division Lux Asia Pacific 4,171 3,701 3,439 2,411Division JAFRA Cosmetics 1,411 1,454 1,543 1,635HECTAS Facility Services 12,130 11,653 11,558 12,105Vorwerk Carpets 343 337 342 352Others 127 129 135 150Total* 23,163 22,628 22,570 22,255Self-employed sales advisers (annual average)Division Kobold 10,709 10,398 9,736 9,335Division Thermomix 15,097 14,614 16,361 18,569Division Feelina 263 284 280 152Division Lux Asia Pacific 2,925 3,177 1,887 1,799Self-employed sales advisers ”household appliances“ 28,994 28,473 28,264 29,855Self-employed sales advisers JAFRA Cosmetics 435,348 482,384 515,151 525,863Self-employed sales advisers in total 464,342 510,857 543,415 555,718akf group** 195 212 250 220Total Vorwerk Workforce 487,700 533,697 566,235 578,193of which sales advisers 467,626 514,046 546,897 558,872*Including employed sales advisers **akf group included in the consolidated statements at equity34

MANAGEMENT REPORT FINANCESAssets and Financial SituationAs a family-owned company with growth perspectives, Vorwerk attaches great importanceto remaining financially independent. Any possible investments or acquisitions should be financedto a great extent from the company’s own financial resources so as to ensure this independencelong-term. Mindful of this, Vorwerk decides in favour of a rather conservative investment strategythat secures and increases the assets long-term but which does not neglect interesting investmentstrategies that may present themselves. In recent years this strategy has provided a better yieldthan comparable external investment opportunities, without any high risks needing to be taken.There is an internal Finance Committee to monitor market developments and financialtrends and to prepare decisions regarding investment strategy. The parameters for such an investmentstrategy are set by the Executive Board and approved by the Supervisory Board. Thefinance department also ensures that as a result of the expansion of business in Asia and America,the ever-increasing level of foreign currency transactions required is adequately hedged.The balance sheet total increased against previous year by 5 million euros. The liquidfunds amounted to 600 million euros. The asset structure was characterised by a slight reductionin liquidity and other assets as well as an increase in fixed assets, thus reflecting the capital increaseat akf group and the capital expenditure in the new JAFRA plant in Mexico. Other reasons forthe rise in the balance sheet total were the higher level of receivables from trade accounts in anamount of some 28 million euros as well as an increase of 13 million euros in the level of securitiesheld short-term.The global financial market crisis caused the quotations on all markets to slump dramaticallyin autumn 2008. Vorwerk’s portfolio of financial assets coped well with this exceptionalsituation. As a reaction to the crisis, Vorwerk currently focuses on high liquidity bond issues andhas greatly reduced the proportion of shares in its portfolio. Financial obligations falling due inthe first half of the year were, with foresight, refinanced mid-term. These measures are within thescope of the investment strategy. It has proven itself and will be retained throughout 2009 as anunderlying principle.35

MANAGEMENT REPORT FINANCESThe proportion of partners' equity rose from 49.3 per cent in previous year to 51.9 percent in the year under review. Given a fall, in particular, in the other provisions and accrualsas well as in short-term obligations towards third parties, the level of liabilities towards affiliatecompanies increased by 20 million euros. The partners' equity fully covers the long-term fixedassets. In addition, current assets are funded to 33 per cent long-term through equity. Adequateliquidity and credit lines are available to ensure continued growth.An increase of 3 per cent in expenditures on materials was consistent with the developmentof turnover. Personnel costs increased by 4 per cent as a result of the increased number ofstaff worldwide.Vorwerk Direct Selling Ventures participates in young companies focusing on directselling. Two such participations were implemented in the year under review. The objective isto identify new trends in direct sales and to support new, innovative companies with Vorwerk’sfinancial resources and experience.Opportunities and RisksThe more diversified structure in terms of business segments as well as countries meansthat Vorwerk has great opportunities to participate in the positive development of the markets.The core business at Vorwerk, direct sales, is a growing, dynamic sector of the economy worldwideand is one in which Vorwerk has a strong and ever-growing position.At the same time the Vorwerk Group is exposed to a range of diverse risks. Handling suchrisks is an essential element of the entrepreneurial leadership function at the Vorwerk Group. Theprinciples of risk management are determined and approved by the Executive Board. Effectiveplanning, reporting and monitoring systems have been put in place for the early recognition,assessment and correct handling of existing business risks. Risk management at the VorwerkGroup is ensured by a uniform set of guidelines that are adapted to suit the various segments36

Blues USA ~1920Bolero Spain ~1780Boogie-woogie USA ~1920Breakdance USA ~1970Calypso Trinidad ~1900Cancan France ~1830Cha-Cha-Cha Cuba ~1950Charleston USA ~1920Disco swing Switzerland ~1987Ententanz Germany 1982Flamenco Spain 16th c.Foxtrott USA ~1910Lambada Latin America 1989Slow waltz England ~1920Letkiss Finland ~1960Lipsi GDR 1959Mambo Cuba ~1940Rumba Cuba 19th c.Salsa New York ~1960Samba Brazil ~1920Swing USA ~1930Tango Argentina ~1900Twist USA ~1960Viennese waltz Austria ~1770Dancing is the best opportunity to tread on each other’s toes. Walter LudinNo sane man will dance. Marcus Tullius CiceroSmooth ice is paradise for those who dance with expertise. Friedrich Wilhelm Nietzsche

of the business. Monthly reporting as well as continual monitoring, particularly of productionprocesses, round off this risk management system. The objective is to improve still further theexisting risk structure. Exchange rate fluctuations are an unavoidable element in global business.Being an international operation, the Vorwerk Group takes into account exchange rate risks thatmay ensue from its operative business activities and hedges them.Vorwerk is exposed to financial risks for portfolio management investments madeon international money and capital markets. However, the company also participates in any profitopportunities. The internal Finance Committee regularly monitors the respective net currencystatus and modifies it whenever necessary within the risk strategy parameters. Vorwerk availsitself of derivative financial instruments in some individual cases to limit the financial risk. Onlymarketable instruments with adequate market liquidity are used. The utilisation of derivativefinancial instruments is subject to internal Vorwerk guidelines and control mechanisms.One risk for the future development of Vorwerk consists in the fact that direct salesis dependent upon general legislative conditions which could, in principle, be amended to thedisadvantage of the corporation. When compared with commerce in general, direct sales stillrepresents a relatively low percentage despite its over-proportionate growth. Therefore, there isa latent risk of a lack of awareness among legislative bodies at national and European levels. Tomake decision-makers more conscious of the advantages of direct sales and its positive effectson employment, Vorwerk implements public relations campaigns, is a member of the industryspecificand cross-industry business associations and maintains an information bureau at theEuropean Union in Brussels.From today’s point of view there are no risks that could have a negative impact on thelong-term existence of the Vorwerk Group. In recent years the high proportion of partners' equity,the improvement in the worldwide strategic position and better operating results have led to thecreation of a higher risk-covering volume. Moreover, this broad base on the global market meansthat Vorwerk is generally well protected against implications for the corporation ensuing fromproblems experienced in regional or industry-specific areas.If you’re running in the wrong direction, there’s no point increasing the speed.Dr. Birgit Breuel

CONSOLIDATED FINANCIAL STATEMENTS 2008Consolidated Balance Sheet 40Consolidated Profit and Loss Account 42Movements in Fixed Assets 44Explanatory Notes 46Auditors’ Report 49

CONSOLIDATED BALA NCE SHEETAs at 31 December 2008Assets 2008 20071 000 1 000A. Fixed AssetsI. Intangible Assets1. Concessions, patents, trademarks and similar rightsas well as licences thereto 13,569 17,7602. Goodwill 283,952 295,1483. Payments on account 250 276297,771 313,184II. Tangible Assets1. Land, land rights and buildings,including buildings on third-party land 47,613 42,0972. Technical plants and machinery 36,692 33,2043. Other fixtures, fittings and office equipment 28,661 23,6744. Payments on account and assets under construction 10,910 6,141123,876 105,116III. Financial Assets1. Participations in associated companies 43,799 21,7732. Other participations 5,458 1,6113. Long-term investments 3,096 3,0214. Other loans 335 85552,688 27,260Fixed Assets 474,335 445,560B. Current AssetsI. Inventories1. Raw materials and consumables 27,421 31,0482. Work in progress, services in progress 6,967 5,7093. Finished products and merchandise 70,760 67,1944. Payments on account 68 219105,216 104,170II. Receivables and other Assets1. Trade accounts receivable; 373,310 345,105of which with a remaining term of more than 1 year: (1,290) (1,249)2. Accounts receivable from associated companies 10,643 2,7713. Other assets; 78,375 93,980of which with a remaining term of more than 1 year: (2,035) (2,122)462,328 441,856III. Other Securities 402,517 389,805IV. Cheques, Cash in Hand,Bank Balances 194,015 247,292Current Assets 1,164,076 1,183,123C. Prepaid Expenses and Deferred Charges 6,872 7,088D. Deferred Tax Assets 2,980 7,4371,648,263 1,643,20840

Equity and Liabilities 2008 20071 000 1 000A. Partners’ Equity1. Capital shares, reserves, capital contributionsof silent partners, net profit of parent company 854,761 807,5522. Minority interestsin capital and reserves 470 3,337in profits 491 -1,409961 1,928855,722 809,480B. Provisions and Accruals1. Provisions for pensions and similar obligations 105,664 109,4542. Provisions for taxes 23,033 25,4513. Other provisions and accruals 142,375 171,774271,072 306,679C. Liabilities1. Amounts payable to banks; 199,896 203,216of which due within 1 year: (28,976) (30,310)of which due after more than 5 years: (15,000) (30,000)2. Advance payments received 18,217 22,372of which due within 1 year: (1,953) (3,019)of which due after more than 5 years: (0) (0)3. Trade accounts payable; 44,294 58,693of which due within 1 year: (44,157) (58,585)of which due after more than 5 years: (0) (0)4. Notes payable; 77 27of which due within 1 year: (77) (27)5. Amounts payable to associated companies; 20,490 9of which due within 1 year: (20,490) (9)6. Other liabilities; 216,955 222,093of which due within 1 year: (209,325) (215,292)of which due after more than 5 years: (3,215) (1,851)of which taxes; (48,887) (47,414)of which within the scope of social security: (8,970) (8,066)499,929 506,410D. Deferred Income 21,540 20,6391,648,263 1,643,208E. Contingent Liabilities arising from1. Bills of exchange 146 1722. Secondary liability for pension obligationstransferred to the relief fund 8,747 8,2663. Liability for sureties 484 50541

CONSOLIDATED PROFIT AND LOSS ACCOUNTFor the Period 1 January to 31 December 20082008 20071 000 1 0001. Gross sales 1,831,677 1,776,942less sales tax 264,870 254,8241,566,807 1,522,1182. Change in finished goods and work in progress 5,943 5893. Own work capitalised 761 3341,573,511 1,523,0414. Other operating income 62,445 65,5645. Raw materials and consumables:a) Expenditure on materialsand purchased merchandise 245,044 236,974b) Expenditure on purchased services 20,852 21,588265,896 258,5621,370,060 1,330,0436. Personnel costsa) Wages and salaries 368,140 353,196b) Social security contributionsand pensions; 83,689 82,527of which for retirement pensions (13,501) (15,419)451,829 435,7237. Depreciation and amortization on tangible andintangible fixed assets 37,646 39,4798. Result from participations in associated companies -18,712 -26,4339. Income from other securities andlong-term loans 302 12110. Other interest and similar income 70,982 64,65711. Write-down of financial assets andmarketable securities 6,322 2,17312. Interest and similar charges 14,563 20,61513. Collective heading 912,272 870,398Other items not shown separately(Other operating costs, taxes, net profit for the year)42

Taxis is an orientation response from freely mobile creatures, in other words the orientation of a movement toward or away from a source of stimulus.

MOVEMENTS IN FIXED ASSETSFrom 1 January to 31 December 2008Gross valuesAs at Currency Book As at1.1.2008 conversion Additions Disposals transfers 31.12.2008differences1 000 1 000 1 000 1 000 1 000 1 000I. Intangible Assets1. Concessions, patents,trademarks and similar rightsas well aslicenses thereto 44,780 -4,685 905 2,673 — 38,3272. Goodwill 335,177 — — — — 335,1773. Payments on account 330 — 55 78 — 307380,287 -4,685 960 2,751 — 373,811II. Tangible Assets1. Land, land rights andbuildings, includingbuildings onthird-party land 104,645 -229 8,268 1,974 314 111,0242. Technical plantsand machinery 192,628 -1,527 14,836 22,249 1,634 185,3223. Other fixtures, fittingsand office equipment 117,805 -2,397 16,069 9,993 593 122,0774. Payments on account andassets under construction 6,141 -332 8,164 522 -2,541 10,910421,219 -4,485 47,337 34,738 — 429,333III. Financial Assets1. Participations inassociated companies 21,773 — 22,026 — — 46,7992. Other participations 1,626 — 4,398 551 — 5,4733. Long-terminvestments 3,071 -4 352 275 — 3,1444. Other loans 1,518 — — 1,152 — 36627,988 -4 26,776 1,978 — 55,782829,494 -9,174 75,073 39,467 — 855,926Everything is in flow, “Panta rhei”44

Accumulated depreciation / amortizationNet valuesAs at Currency As at As at As at1.1.2008 conversion Additions Disposals 31.12.2008 31.12.2008 31.12.2007differences1 000 1 000 1 000 1 000 1 000 1 000 1 00027,020 -1,998 2,354 2,618 24,758 13,569 17,76040,029 — 14,196 — 54,225 283,952 295,14854 — 3 — 57 250 27667,103 -1,998 13,553 2,618 76,040 297,771 313,18462,548 91 2,741 1,969 63,411 47,613 42,097159,424 -763 11,864 21,895 148,630 36,692 33,20494,131 -1,882 9,489 8,322 93,416 28,661 23,674— — — — — 10,910 6,141316,103 -2,554 24,094 32,186 305,457 123,876 105,116— — — — — 43,799 21,77315 — 491 491 15 5,458 1,61150 — 3 5 48 3,096 3,021663 — 164 796 31 335 855728 — 658 1,292 94 52,688 27,260383,934 -4,552 38,305 36,096 381,591 474,335 445,560Everything is on the move.Heraklit

EXPLANATORY NOTES TO FINANCIAL STATEMENTSI. Introductory RemarksFor the financial year 2008, as in previousyears, Vorwerk & Co. KG is publiclydisclosing its worldwide consolidatedfinancial statements in accordancewith the provisions containedin the German Publication and DisclosureLaw (PublG) and the GermanCommercial Code (HGB) governingconsolidated financial statements andgroup annual reports. A record of theaffiliated and associated companiesgiving the direct or indirect participationsin them (§ 313, Section 2 Nos. 1and 2 of the HGB) is contained in aseparate listing of investment holdings(§ 313, Section 4 of the HGB).II. Consolidated GroupThe parent company is Vorwerk & Co.KG (Holding Company). The Groupcompanies do business in the followingcommercial segments: production anddirect sales of high-quality householdappliances and cosmetic, facial andbody-care products as well as infrastructuralfacility services and carpets. In theyear under review nine newly-foundedor acquired companies have been includedin the consolidated figures forthe first time. Two companies have beenremoved from the consolidated figuresbecause they were liquidated or sold.Further, the remaining 10 per cent heldby other shareholders in Vorwerk’s LuxAsia Pacific were acquired in the businessyear under review. The domesticakf banking group and a foreign-basedlogistics company have been includedin the figures at equity as associatedcompanies in accordance with the provisionsof §§ 311 and 312 of the HGB.Two associated companies of lesser significancehave not been incorporatedin the consolidated figures pursuant to§ 311, Section 2 of the HGB, but havebeen included at acquisition cost.III. Accounting and ValuationMethodsThe balance sheet and the profit andloss account are laid out for reportingpurposes in accordance with the formatstipulated in §§ 290 ff, 266 and 275 of theHGB for corporate entities.For disclosure purposes, the option providedfor under the German Publicationand Disclosure Law (to show capital, reservesand profit as partners’ equity) hasbeen exercised. In this respect the investmentsof silent partners have also beenincluded in partners’ equity on accountof the fact that they are provided witha subordination clause and since theyare of an equity-capital-similar nature.Moreover, with respect to § 13, Section3, Clause 2 of the PublG, information isalso provided in the explanatory notesto the consolidated financial statementsas per § 5, Section 5 of the same PublG.In this respect taxes and profit for theyear have been included with other operatingcosts under the collective heading“Other items not shown separately”.Vorwerk & Co. KG’s accounting andvaluation principles also pertain to theconsolidated financial statements. Thefinancial statements of non-Germansubsidiaries drawn up in accordancewith national rules and regulations andat variance with to German legal requirementshave been adjusted in linewith what is known as the HandelsbilanzII (Type II Commercial Balance Sheet).The valuation methods applied can beregarded as a uniform valuation as definedin § 308, Section 1 of the HGB. Theyhave remained unchanged from thoseapplied in previous year apart fromsome insignificant modifications regardingwrite-down of low-value assets andthe changeover from declining-balanceto straight-line depreciation of tangiblefixed assets for the German companies.Purchased intangible assets have beenvalued at their cost of acquisition lessscheduled straight-line amortization. Inthe case of tangible fixed assets, wherethe period of usefulness is limited, theacquisition or manufacturing cost hasbeen depreciated (straight-line or declining-balance)at reasonable, scheduledrates.As a rule, the straight-line method ofdepreciation has been used for all additionsup till1 January 2008 where thisresulted in higher amounts of depreciation.The tax-relevant benefits of depreciatinglow-value assets have beentaken advantage of. Financial assetshave been valued at cost or lower attributablevalue. The movements in fixedassets can be seen in the corresponding“Movements in Fixed Assets” table.Inventory has been valued at averageacquisition cost or manufacturing costin accordance with the principle oflowest value. Apart from direct costs,the manufacturing costs only includereasonable proportions of the materialand manufacturing overheads involved.Receivables and other assets havebeen shown at nominal value less appropriateprovisions for bad debts andother write-downs. Marketable securitieshave been assessed at acquisition costor at the lower attributable value prevailingas of balance sheet date plusproportionate incidental costs for acquiringsuch. Liquid funds have beenstrated at nominal value.Revaluations have been effected inaccordance with § 280, Section 1 ofthe HGB. All identifiable risks anduncertain liabilities have been ad-46

equately considered in the formationof the provisions. The accrual amountsfor pensions, which relate primarilyto Germany, have been determinedin accordance with the current valueprinciple pursuant to § 6a of the IncomeTax Law (EStG); the guidelinetables 2005 G and an interest rate of 6percent being applied. Liabilities havebeen shown at the amount payable.The deferred income item relates primarilyto hire purchase finance transactions.IV. Foreign Currency ConversionAll balance sheet items of the companiesof the Group that are included inthe consolidation, but which are locatedoutside the eurozone have beenconverted into euros from the respectivecurrency at the rate of exchange prevailingas of balance sheet date (averagevalue). Income and expenditure shownin the corresponding profit and loss accountshave, with the exception of writedownscorrespondingly transformed asof balance sheet date, been convertedat the average rate of exchange for theyear 2008 (modified closing rate valuationmethod). The ensuing differencesof 7.2 million euros after conversionhave been included for the first timewithout profit effect within the partners’equity. The conversion effects resultingfrom the change in rates between balancesheet dates have led to a 7.5 millioneuro decrease in reserves within thecontext of the development of partners’equity, but having no effect on profits.V. Consolidation PrinciplesThe companies included in the consolidatedfinancial statements all have 31December as their balance sheet date.Consolidation of the balance sheets andprofit and loss accounts of the companiesincluded therein has been carriedout in accordance with the followingprinciples:1. Capital ConsolidationCapital has been consolidated in accordancewith the book value method. Inthis respect the book values of the holdingshave been set against the equitycapital level of the corresponding subsidiarycompanies including reservesand the result brought forward at thedate of initial consolidation or at thedate of acquisition. Debit differencesresulting from the first-time consolidationof the JAFRA Group have beenstated as goodwill after the appropriationof hidden reserves to assets andliabilities. The goodwill of the JAFRAGroup will be written-off over a periodof 30 years using the straight-line method.The remaining debit differencesfrom previous years have been nettedagainst reserves. Debit differences arisingfrom the acquisition of subsidariesin 2008 (10.0 million euros) have beenopenly netted against reserves in accordancewith § 309, Section 1, Clause 3 ofthe HGB. Should any credit differenceshave resulted from this netting, suchhave been incorporated into the reservesin previous years on account oftheir reserve character. The participatinginterests of outside shareholders inthe equity capital subject to consolidationand in the results of the subsidiarycompanies included in the consolidationhave been shown in the compensatingitem for minority interests. Theassociated companies of akf bankinggroup and the foreign-based logisticscompany, included at equity, havebeen consolidated in accordance withthe same principles. In this respect thevaluation principles of the associatedcompanies have been adopted withoutchange. Since Vorwerk exercises nouniform direction over the akf bankinggroup, its figures have been included inthe financial statements at equity. akfleasing Beteiligungs GmbH has preparedconsolidated financial statementsfor the companies of the akf leasingbusiness as of 31 December 2008. Inaccordance with § 312, Section 6 of theHGB, these figures have been taken asthe basis for consolidation. Vorwerk’sshare of profits for the year under reviewfrom the companies consolidatedat equity has been included in the profitand loss account as the result from participationsin associated companies.2. Consolidation of DebtAmounts due as receivables or payablesin respect of companies within the consolidatedgroup have been offset againsteach other for consolidation purposes(§ 303 of the HGB).3. Consolidation of EarningsThe consolidation of expenditure andincome contained in the items shownin the consolidated profit and lossaccount comply with § 305 of the HGB.Inter-company sales and the correspondinglevel of expenditure as wellas other, mutual inter-company expenditureand income from the consolidatedcompanies’ profit and loss accounts havebeen set against each other.4. Deferred TaxationDebit deferred taxation from the individualfinancial statements have been nettedwith credit deferred taxation balancesfrom the individual financial statementsor from the consolidation process andan amount of 3.0 million euros has been47

EXPLANATORY NOTES TO FINANCIAL STATEMENTSreported (§ 306, Clause 3 of the HGB)pursuant to the assessment option providedfor in § 274, Section 2 in associationwith § 300, Section 2 of the HGB.6.0 million euros of credit deferredtaxation balances have resulted fromthe consolidation measures, from theelimination of inter-company resultsand from the consolidation of debt. Whencalculating taxation for consolidationentries affecting profits pursuant to § 306of the HGB, a uniform Group-wideaverage rate of taxation has been applied.The calculation of deferred taxationfor individual financial statementshas been effected on the basis of taxrates applying for individual companies.VI. Other Statutory Disclosures inAccordance with § 314 of the HGBand Explanatory Notes to VariousItems in the Consolidated BalanceSheet and Consolidated Profit andLoss Account1. Other Financial CommitmentsThe expenses arising from rental, tenancyand leasing contracts amountedto 34.1 million euros in 2008 and areexpected to be at a similar level inthe next two financial years. These expensesare spread over the entire Groupworldwide and relate to contracts withvarious terms of duration. Order obligationsfor investments in tangiblefixed assets amount to 17.3 million (9.1million euros in previous year).2. Profit and Loss AccountGroup Sales (including sales tax)Breakdown by 2007 2008Region millions 1 millions 1Germany 461.1 459.9Europe 832.2 910.7North America 405.9 385.3Rest of world 77.7 75.8Total 1,776.9 1,831.7Group sales divided according to businesssegment are shown in the GroupManagement Report.3. Present Value of DerivativeFinancial InstrumentsTo hedge against currency risks, the VorwerkGroup uses exchange rate futuresand options as well as interest rate swapsboth in its operative business activitiesas well as in the area of foreign currencyfinancing. The present value of a derivativefinancial instrument is the price atwhich a party would acquire the rightsand/or obligations entailed in this financialinstrument from another party. Thebook and present values of the financialinstruments of the Vorwerk Group arereported as follows:Derivative Financial Instrumentsin 1 000a) Currency options b) Exchange futuresc) Interest rate swapsNominal value Book value Present value31. 12. 08a) 27,725 0 5,206b) 43,264 -193 43,773c) 86,654 0 -2,411valuation on closing date. The presentvalues of exchange rate futures are determinedaccording to the closing rateas of balance sheet date, taking forwarddiscounts and premiums into account.The present values of currency optionsare assessed on the basis of optionprice models pursuant to Black &Scholes. The present values of interestrate hedging instruments (interest rateswaps) are determined on the basisof discounted, anticipated future cashflows, whereby the current market interestrates for the remaining term ofthe financial instruments are applied.4. Other InformationAverage annual staffing level2007 2008Employees* 22,570 22,255Sales SystemAdvisers 543,415 555,718Kobold 9,736 9,335Thermomix 16,361 18,569Feelina 280 152JAFRA Cosmetics 515,151 525,863Lux Asia Pacific 1,887 1,799*Including employed sales advisersManagement at the parent companyVorwerk & Co. KG is in the hands of theManaging Partners Peter Oberegger,Düsseldorf and Walter Muyres, Jüchen.Wuppertal, 15 April 2009Provisions for threatening losses of0.2 million euros have been formed tocover eventualities in exchange ratefuture transactions. The nominal valueof the derivative financial instrumentsis determined using the exchange ratePeter ObereggerWalter Muyres48

AUDITORS' REPORTThe foregoing consolidated balancesheet with its explanatory notes as intendedfor publication together withthe Group Management Report complywith the legal requirements.PricewaterhouseCoopers AktiengesellschaftWirtschaftsprüfungsgesellschaft,Essen, expressed the following opinionon the complete consolidated financialstatements and the Group ManagementReport:“Audit opinionWe have audited the consolidated financialstatements – prepared by theVorwerk & Co. KG, Wuppertal, comprisingthe balance sheet, profit andloss account and explanatory notes – andthe Group Management Report for thebusiness year from 1 January to 31 December2008. The preparation of theconsolidated financial statements andthe Group Management Report in accordancewith German commercial lawis the responsibility of the managingpartners of the company. Our responsibilityis to express an opinion on theconsolidated financial statements andthe Group Management Report basedon our audit. We conducted our auditof the consolidated financial statementsin accordance with § 317 of the GermanHGB (German Commercial Code) andthe generally accepted standards for theaudit of financial statements promulgatedby the Institut der Wirschaftsprüferin Deutschland (IDW). Those standardsrequire that we plan and perform theaudit such that misstatements materiallyaffecting the presentation of the netassets, financial position and results ofoperations in the consolidated financialstatements in accordance with Germanprinciples of proper accounting andin the group management report aredetected with reasonable assurance.Knowledge of the business activitiesand the economic and legal environmentof the Group and expactationsas to possible misstatements are takeninto account in the determination ofaudit procedures. The effectiveness ofthe accounting-related internal controlsystem and the evidence supporting thedisclosures in the consolidated financialstatements and the group managementreport are examined primarilyon a test basis within the framework ofthe audit. The audit includes assessingthe annual financial statements of thecompanies included in consolidation,the determination of the companies tobe included in consolidation, the accountingand consolidation principlesused and significant estimates madeby the managing partners as well asevaluating the overall presentation ofthe consolidated financial statementsand the group management report.We believe that our audit provides areasonable basis for our opinion. Ouraudit has not led to any reservations.In our opinion, based on the findingsof our audit, the consolidated financialstatements comply with the legalrequirements and give a true and fairview of the net assets, financial positionand results of operations of the group inaccordance with German principles ofproper accounting. The Group ManagementReport is consistent with theconsolidated financial statements andas a whole provides a suitable view ofthe group’s position and appropriatelypresents the opportunities and risks offuture development.”Essen, 15 April 2009PricewaterhouseCoopersAktiengesellschaftWirtschaftsprüfungsgesellschaftPeter AlbrechtAuditorThomas HofmannAuditor49

THE MAIN COMPANIES IN THE VORWERK GROUPVorwerk & Co. KGMühlenweg 17 - 3742270 WuppertalDeutschlandVorwerk & Co. Interholding GmbHMühlenweg 17 - 3742270 WuppertalDeutschlandVorwerk & Co.Beteiligungsgesellschaft mbHMühlenweg 17 - 3742270 WuppertalDeutschlandVorwerk InternationalMittelsten Scheid & Co.Verenastr. 398832 WollerauSchweizVorwerk & Co. KGBruxelles Bureau47, Rue Montoyer1000 BruxellesBelgiqueVorwerk Direct SellingVentures GmbHMühlenweg 17 - 3742270 WuppertalDeutschlandDirect Sales, VorwerkItalyVorwerk Folletto s.r.l.Via Ludovico di Breme, 3320156 MilanoVorwerk Contempora s.r.l.Via Ludovico di Breme, 3320156 MilanoGermanyVorwerk Deutschland Stiftung & Co. KGGeschäftsbereich KoboldMühlenweg 17 - 3742270 WuppertalVorwerk Deutschland Stiftung & Co. KGGeschäftsbereich ThermomixMühlenweg 17 - 3742270 WuppertalSpainVorwerk España M.S.L., S.C.Avda. Arroyo del Santo, 728042 MadridFranceVorwerk France s.c.s.5, rue Jacques Daguerre44306 Nantes Cedex 3ChinaVorwerk HouseholdAppliances Co., Ltd.9F, Vorwerk Plaza1768 Yishan Road201103, ShanghaiPortugalVorwerk Portugal Electrodomesticos LDARua Quinta do PaizinhoEdificio Bepor, Bloco 2-2° Esq.2790-237 Carnaxide/LisboaAustriaVorwerk Austria GmbH & Co. KGSchäfferhofstr. 156971 Hard/BregenzPolandVorwerk Polska Sp. z o. o.ul. Strzegomska 2-453-611 WrocławCzech RepublicVorwerk CS k.s.Pod Pekar ˇkou 1/107147 00 Praha 4Taiwan R.O.C.Vorwerk Lux (Far East) Ltd.Taiwan Branch5F, No. 85, Sec 1Chung-Hsiao East Rd.Taipei City 100RussiaVorwerk CIS LLCSchipok street, 9/26, Building 1115054 MoskvaMexicoVorwerk México S. de R.L. de C.V.Av. Paseo de las Palmas No. 320, LocalPB-ACol. Lomas de ChapultepecDelegación Miguel Hidalgo C.P. 11000México D.FVorwerk EngineeringGermanyVorwerk Elektrowerke GmbH & Co. KGMühlenweg 17 - 3742270 WuppertalFranceVorwerk Semco S.A.S.20, route de Montigny28220 Cloyes-sur-le-LoirItalyVorwerk Folletto Manufacturing s.r.l.Via Garibaldi, 2720043 Arcore-MilanoChinaVorwerk HouseholdApplianceManufacturing (Shanghai)Co., Ltd.Songze Ave. 8777Qinpu District201700, ShanghaiDirect Sales, JAFRA CosmeticsHeadquarters & USAJAFRA Cosmetics International, Inc.2451 Townsgate RoadWestlake Village, CA 91361MexicoJAFRA Cosmetics S.A. de C.V.Blvd. Aldolfo López Mateos #515Colonia TlacopacDelegación Alvaro Obregón01040 MéxicoGermanyJAFRA Cosmetics GmbH & Co. KGLeonrodstr. 5280636 MünchenItalyJAFRA Cosmetics S.p.A.Piazza San Vittore 221100 VareseSwitzerlandJAFRA Cosmetics AGRiedstr. 3/56330 ChamAustriaJAFRA Cosmetics Handelsgesellschaft mbHSchäfferhofstr. 156971 Hard50

BrazilDistribuidora JAFRA de Cosmeticos, Ltd.Avenida Jurema 137Moema CEP 04079-002Sao PauloThe NetherlandsJAFRA Cosmetics International B.V.Geograaf 306921 EW DuivenDominican RepublicJAFRA Cosmetics Dominicana S.A.Gustavo Mejia Ricart No. 121Ensanche JulietaSanto DomingoRussiaJAFRA Cosmetics International LLC10 Pervyi Volokolamskiy proezd123060 MoskvaProductionCosméticos y Fragancias S.A. de C.V.Victoria #25Fracc. Industrial Alce BlancoNaucalpanEstado de México 53370Direct Sales, Lux Asia PacificHeadquartersLux Asia Pacific Pte Ltd.390 Havelock Road #08-02King's CentreSingapore 169662ThailandLux Royal (Thailand) Co., Ltd.523-525 Lux BuildingSukhumvit 71, Phra Khanong-NuaWattana, Bangkok 10110IndonesiaP. T. Luxindo RayaJL. Agug Timur 9Blok 01/29-30Sunter Agung Podomoro14350 JakartaJapanLux (Japan) Ltd.Crescendo Bldg., 2-3-4 Shin-YokohamaKohoku-ku222-0033 YokohamaTaiwan R.O.CVorwerk Lux (Far East) Ltd.Taiwan Branch (H.K.)2F, No. 2, Ruiguang RoadNeihu DistrictTaipei City 114PhilippinesLux Marketing Inc.Molave Building 2F2231 Pasong TamoMakati Cityakf Financial ServicesGermanyakf bank GmbH & Co. KGFriedrichstr. 5142105 Wuppertalakf leasing GmbH & Co. KGFriedrichstr. 5142105 Wuppertalakf servicelease GmbHJohannisberg 742103 WuppertalSpainakf Equiprent S.A.P.E. La MoralejaAv. de Europa 12, 3 a28108 Alcobendas/Madridakf servicelease España S.L.P.E. La MoralejaAv. de Europa 12, 3 a28108 Alcobendas/MadridPolandakf leasing polska S. A.ul. Jana Pawla II 1500828 WarszawaRegon 141060180HECTAS Facility ServicesGermanyHECTAS GebäudediensteStiftung & Co. KGAm Diek 5242277 WuppertalHECTAS GebäudereinigungStiftung & Co. KGKonsumstr. 4542285 WuppertalHECTAS GebäudemanagementGmbH & Co. KGAm Diek 5242277 WuppertalHECTAS Sicherheitsdienste GmbHAm Diek 5242277 WuppertalBeneluxHECTAS Bedrijfsdiensten C.V.Geograaf 30NL 6921 EW DuivenAustriaHECTAS GebäudediensteGes.m.b.H. & Co. KGSonnwendgasse 189020 KlagenfurtPolandHECTAS usługi Sp. z o. o.ul. Grabiszynska 241 B53-234 WrocławCzech RepublicHECTAS Technickéa bezpecnostní sluzby, s.r.o.Luzická 961600 Brno – ZabovreskyHungaryHECTAS MagyarországÉpületfenntartó Kft.Hungária krt. 140-144, Stock III1146 BudapestVorwerk CarpetsVorwerk & Co. TeppichwerkeGmbH & Co. KGKuhlmannstr. 1131785 HamelnDeutschland51

Sources:Bilderbogen-DokumentationszentrumNeuruppin, page 2; Hans Traxler,page 9, 43; Akiyoshi Kitaoka, page 13;Bob Langrish, page15; Regina Göllner,page 15, 23; Edward Lear, page 19;André Poloczek, page 19, 25, 29, 39;Giacomo Balla, page 45;Matthew Flinders, page 52Publication: Vorwerk & Co. KG,Mühlenweg 17 - 37, 42270 Wuppertal+49 202 564-1221www.vorwerk.comannual.report@vorwerk.deEditorial staff: Jürgen Hardt(person responsible),Alexandra Stolpe,Corporate Communicationsof the Vorwerk GroupDesign: Hermann Michelsand Regina Göllner, WuppertalText: Vorwerk & Co. KG,Stefan Hoinka, BochumTranslation: Alan Hall, Wuppertal,Lynda Matschke, HamburgProduction: DruckhausLey + Wiegandt, Wuppertal© Vorwerk & Co. KG, 2009Our annual report is publishedin German and English with atotal circulation of 12,000 copies.Wood products originatingfrom responsibly managed forests aremarked with the FSC trademark and areindependently certified in accordancewith stringent Forest StewardshipCouncil (FSC) criteria.Only FSC-approved paper was usedin the printing and preparation of thisannual report.“If you want to reach the sourceyou have to swim against the current.”Chinese proverb52